Station Casinos Announces First Quarter 2013 Results

LAS VEGAS--(BUSINESS WIRE)--Station Casinos LLC (“Station” or the “Company”) today announced the
results of its operations for the quarter ended March 31, 2013.

“Station Casinos has had an exciting start to 2013,” said Marc Falcone,
Executive Vice President, Chief Financial Officer and Treasurer. “We
became the first company to launch real money online poker in Nevada
through our subsidiary, Fertitta Interactive. We also completed a $2.475
billion global refinancing which consolidated our capital structure, and
despite some revenue headwinds for the first quarter, we posted our
eighth consecutive quarter of year over year EBITDAM growth,” said
Falcone.

Highlights for the quarter include:

Established first mover advantage with the launch of our real money
online poker platform on April 30, 2013 via Ultimate Gaming

Streamlined organizational and capital structure with the completion
of the $2.475 billion refinancing in March 2013

Continued construction on Graton Resort & Casino, which remains on
budget and on schedule to open in Q4 2013

Achieved further milestones on the North Fork Rancheria project with
the acceptance of land into trust by the Department of Interior

Consolidated Results of Operations

The Company's consolidated net revenues for the first quarter ended
March 31, 2013 were approximately $311.8 million, down 2.0% compared to
the same period of the prior year. Consolidated Adjusted EBITDAM for the
quarter, excluding Fertitta Interactive, was $98.3 million, an increase
of 0.5% compared to the same period of the prior year. Consolidated
Adjusted EBITDAM margins increased by 80 bps compared to the same period
of the prior year to 31.5% for the quarter. Including the results of
Fertitta Interactive, consolidated net revenues were $312 million and
Consolidated Adjusted EBITDAM was $95.6 million for the quarter.

“Net revenues in the first quarter were impacted by a combination of the
increase in social security payroll tax, federal tax refund delays and
one less day in February this year versus last year. Results improved
meaningfully in March, and our focus on managing costs led to an 80 bps
increase in EBITDAM margins, our highest quarterly margin reported in
three years. We remain optimistic that improving macro fundamentals
coupled with our strong margins should result in improved operating
performance throughout 2013,” said Falcone.

Adjusted EBITDAM is not a generally accepted accounting principle
(“GAAP”) measurement and is presented solely as a supplemental
disclosure because the Company believes that it is a widely used measure
of operating performance in the gaming industry and is a principal basis
for valuation of gaming companies. Adjusted EBITDAM is further defined
in footnote 1.

Fertitta Interactive

On April 18, 2013, our majority owned subsidiary, Fertitta Interactive,
received a license to operate real money online poker in the state of
Nevada. On April 30, 2013, Fertitta Interactive made history as the
first company to launch real money online poker in the United States
through ultimatepoker.com. “Our unmatched online real money poker
experience has been very well received by the public, with nearly one
million hands of online poker dealt to players since the launch. We
believe that owning our technology is a major advantage, as it allows
for continuous investment and product development. The team at Ultimate
Gaming worked closely with state gaming regulators to monitor and
approve the technology, and we seek to constantly improve our system and
enhance the customer experience with new features, games and platforms.
The soft launch of our platform in April has exceeded expectations, and
we are committed to expanding our presence in Nevada while, at the same
time, expanding our reach to other states as online poker becomes
legalized on a broader scale,” said Falcone.

Balance Sheet and Capital Expenditures

As of March 31, 2013, the outstanding principal balance of long-term
debt was $2.17 billion on a consolidated basis (excluding a nonrecourse
land loan of $110.2 million), and our consolidated debt to Adjusted
EBITDAM ratio was approximately 6.3x, excluding the land loan. Capital
expenditures for the quarter totaled $29.0 million.

Conference Call Information

The Company will host a conference call on May 14, 2013 at 1:30 p.m.
(PDT) to discuss its first quarter 2013 financial results. The
conference call will consist of prepared remarks from the Company and
will include a question and answer session. Those interested in
participating in the call should dial (877) 331-7677 or (713) 936-6995
for international callers, approximately 15 minutes before the call
start time. A replay of the call will be available from 5:00 p.m. (PDT)
on May 14, 2013 at https://www.sclv.com/Investor-Relations.aspx.
A live audio webcast of the call will also be available at www.sclv.com.

Company Information and Forward Looking Statements

Station Casinos LLC is the leading provider of gaming and entertainment
to the residents of Las Vegas, Nevada. Station’s properties, which are
located throughout the Las Vegas valley, are regional entertainment
destinations and include various amenities, including numerous
restaurants, entertainment venues, movie theaters, bowling and
convention/banquet space, as well as traditional casino gaming offerings
such as video poker, slot machines, table games, bingo and race and
sports wagering. Station owns and operates Red Rock Casino Resort Spa,
Green Valley Ranch Resort Casino Spa, Palace Station Hotel & Casino,
Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe
Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta
Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho,
Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, and Wildfire
Sunset. Station also owns a 50% interest in Barley’s Casino & Brewing
Company, Wildfire Lanes and Casino and The Greens. In addition, Station
owns a 50% interest in MPM Enterprises, LLC, which is the manager of the
Gun Lake Casino in southwestern Michigan, and a 57.3% interest in
Fertitta Interactive.

This press release contains certain forward-looking statements with
respect to the Company and its subsidiaries which involve risks and
uncertainties that cannot be predicted or quantified, and consequently,
actual results may differ materially from those expressed or implied
herein. Such risks and uncertainties include, but are not limited to the
economic downturn, and in particular the economic downturn in Nevada,
and its effect on consumer spending and our business; the effects of
intense competition that exists in the gaming industry; the risk that
new gaming licenses or gaming activities, such as internet gaming, are
approved and result in additional competition; our substantial
outstanding indebtedness and the effect of our significant debt service
requirements on our operations and ability to compete; risks relating to
our investment in Fertitta Interactive; the risk that we will not be
able to finance our development and investment projects or refinance our
outstanding indebtedness; the impact of extensive regulation from gaming
and other government authorities on our ability to operate our business
and the risk that regulatory authorities may revoke, suspend, condition
or limit our gaming or other licenses, impose substantial fines or take
other actions that adversely affect us; risks associated with changes to
applicable gaming and tax laws that could have a material adverse effect
on our financial condition; general business conditions including
competitive practices, changes in customer demand and the cyclical
nature of the gaming and hospitality business in general, and general
economic conditions, including interest rates, on our business and
results of operations; adverse outcomes of legal proceedings and the
development of, and changes in, claims or litigation reserves; risks,
such as cost overruns and construction delays, associated with
development, construction and management of new projects or the
expansion of existing facilities, including the Graton Resort and
Casino; and other risks described in the filings of the Company with the
Securities and Exchange Commission.

(1) Adjusted EBITDAM consists of net income plus interest, net, loss on
extinguishment of debt, preopening expenses, charges relating to share
based compensation, certain items attributable to non-controlling
affiliates or joint ventures, other non-recurring costs, changes in fair
value of derivative instruments, depreciation, amortization, management
fee expense and adjusted EBITDAM of Fertitta Interactive. EBITDA and
Adjusted EBITDAM are presented solely as supplemental disclosure because
the Company believes that they are widely used measures of operating
performance in the gaming industry and as a principal basis for
valuation of gaming companies. The Company believes that in addition to
cash flows and net income, EBITDA and adjusted EBITDAM are a useful
financial performance measurement for assessing the operating
performance of the Company. Together with net income and cash flows,
EBITDA and adjusted EBITDAM provide investors with an additional basis
to evaluate the ability of the Company to incur and service debt and
incur capital expenditures. To evaluate EBITDA and adjusted EBITDAM and
the trends they depict, the components should be considered. The impact
of interest and other expense, net, loss on extinguishment of debt,
preopening expenses, charges relating to share based compensation,
certain items attributable to non-controlling affiliates or joint
ventures, other non-recurring costs, changes in fair value of derivative
instruments, depreciation, amortization, management fee expense, and
adjusted EBITDAM of Fertitta Interactive, each of which can
significantly affect the Company’s results of operations and liquidity
and should be considered in evaluating the Company’s operating
performance, cannot be determined from EBITDA or adjusted EBITDAM.
Further, EBITDA and adjusted EBITDAM do not represent net income or cash
flows from operating, financing and investing activities as defined by
generally accepted accounting principles (“GAAP”) and do not necessarily
indicate cash flows will be sufficient to fund cash needs. Such measures
should not be considered as alternatives to net income, as indicators of
the Company’s operating performance or to cash flows as a measure of
liquidity. In addition, it should be noted that not all gaming companies
that report EBITDA, EBITDAM or adjustments to such measures may
calculate EBITDA, EBITDAM or such adjustments in the same manner as the
Company, and therefore, the Company’s measure of EBITDA and adjusted
EBITDAM may not be comparable to similarly titled measures used by other
gaming companies. A reconciliation of EBITDA and adjusted EBITDAM to net
income is included in the financial schedules accompanying this release.